StubHub, represented by its in-house compliance counsel John Lawrence, quickly came under fire for the way it presents its fees. Essentially every person on the panel agreed, appearing to politely beg the FTC to regulate them so that people would like them again. The whole thing took an hour, and at the end, there was no consensus on how to make ticket fees more fair.
Nothing was even on the table. At no point during the panel did it come up that TicketMaster has been the subject of both state and federal government scrutiny — in more than one country — for years because of its fees. AMC has its own ticketing app, and a Facebook integration, but it still has to pay to process those transactions. Museums sometimes have fees of a dollar or two for buying tickets online, and this makes sense as well. According to the GAO study , while sporting event ticket fees average 20 percent of face value, concerts are even worse, averaging This is somewhat baffling, but we can intuit that Ticketmaster knows just how dedicated fans are to seeing their favorite artists, and how much they can wring out of them in that moment of high-stakes desperation.
In addition to the huge payout, the company was compelled to add disclosures on its website acknowledging that fees are a source of profit. That lawsuit, originally filed in by angry Wilco and Bruce Springsteen fans, paid out anybody who had bought tickets on the Ticketmaster website between October 21, and February 27, Not because they were considered predatorily high, or the product of an old-school monopoly getting away with whatever business practices it likes.
This is not a heartwarming success story. If anything, we should be glad that guy in the audience managed to yell a little bit. Sign up for The Goods newsletter. To explore this idea, the researchers examined how users clicked around StubHub.
Hidden-fee users were then more likely to go back and search other ticket listings. Shortly after the experiment, StubHub changed the price structure across the whole site to use back-end fees, hiding them until the checkout page. They found that the ticket sellers began listing more higher-quality tickets located closer to the event stages, consistent with buyers purchasing more expensive tickets.
These days, extra fees are pretty standard in the ticket sales industry, and presumably, many users expect them. Definitely didn't send out an email. I'm annoyed they increased prices but annoyed has turned into anger know they made no effort to communicate it to sellers.
As a frequent seller on StubHub, I am not at all happy with the increased fees and the lack of transparency around how they are now determined. Buy tickets Sign In.
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